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San Francisco 8, Adams 4, The City 4, Lisa 2, Obama 2, Levy 2, Dwight 1, Mr. Michael Mcarthur 1, Jerry Brown 1, Yee Riley 1, O'brien 1, Dooley 1, Air Conditioning 1, Beijing 1, San Diego 1, New Restrooms 1, Humboldt 1, Shanghai 1, Moscone 1, Asian Mafia 1,
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  SFGTV2    [untitled]  

    November 26, 2012
    2:00 - 2:30pm PST  

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>> the time is now 2:07 p.m. and the meeting is being called to order. at this time, if members of the public can please turn off cell phones and put them on "silent," there is a sign-in sheet at the front table if you would like to be added to our mailing list and speaker cards are available. public comment will be taken at the beginning of the meeting and then there will be public comment on each item. we do ask that you fill out a speaker card and leave it at the front counter, here. first item is roll call. commissioner adams? >> here. >> commissioner dooley? >> here. >> commissioner dwight is absent. commissioner ortiz-cartagena? >> commissioner o'brien? >> present. >> excellent. commissioner white? >> here.
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>> commissioner yee riley? >> here. >> mr. president we have a quorum. >> great, next item. >> item 2 is the approval of the october 1, 2012 minutes, explanatory documents draft october 22, 2012 minutes. >> motion to approve. >> i move. >> second >> all those in favor, say aye? >> aye? >> next item commissioners item 3 approval of the october 22, 2012 meeting minutes. >> explanatory document draft october 22, 2012 minutes. >> i move. >> i second. >> all in favor? >> aye. >> next item. >> commissioners you are now in general public comment, item 4 allows members of public to comment generally on matters in
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the commission's purview and suggests new agenda items for the commission's consideration. i do have one speaker card and i'm pulling up the controls right now. mr. michael mcarthur. >> welcome. >> thank you. >> go ahead. >> thank you. president adams and commission, i will be very brief. just on the item that is in question today, the ordinance. it's kind of neither here, nor there, but i'm opposed to the ordinance all together now. i actually do think there needs to be -- >> the item that you are talking about, is it something on today's agenda? >> the transportation code. it's the wording that is the
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amendments. >> i will get to the general. >> you can talk about anything not on today'sgend. >> small business is something superimportant to san francisco, as you know. it helped to build in 1948 going to war and 1849 oldies. i would highly encourage you to call the duck house, in humboldt county. they did measure ii and measure f restricting corporate power. i don't know what your body or what the viewers and listeners can do, but it's super important to support our small business community because we have too much outside influence going on in san francisco right now. they make it so small businesses can't thrive and make -- and they have our whole city on lock-down. it's ridiculous. you can't do anything without jumping through hoops and red tape and then we have other people that are able to cut the red tape and come out here from
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outside influence whether it's politics or business. they come from beijing and shanghai and can start businesses and make money. i'm a small business owner myself. i have a promotion management agency that i'm just now going public with. so small business is super important and that is what you guys are here for; right? thank you for acknowledging that, president adams. i appreciate your guys' time and that everyone showed up. i thought it was an empty house. does someone sit there or is that open? you can't answer? i can pause for a second. is that seat open? >> that person is not here today. >> oh, okay, cool. so there is no available seats on the board? >> if you go to 311.org, there is no availability right now on 311.org they post if there is a
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vacancy. >> point of order if you could stop the clock. thank you. i have been trying to open a bunch of businesses. we have businesses -- it has prostitution rings and cracked galore going on pretty much. it used to be thursday through monday. i started to work there since i was 16. i am asking the sheriff's offices or the state office or my third cousin barack obama to look it up. so that needs to be shutdown real soon. they run all kinds of drugs out of there. the chief of police backed by asian mafia, ed lee they don't mind at all. [speaker not understood] i hear that the sheriff is going to do something about it and jerry brown has our back and so did obama. so the whole office should be further investigated and we want to support our local businesses. i
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would suggest that anyone who loves local businesses -- i hear on good authority there will be six new supreme court justices because they are just not doing their job. thank you. >> any other public comment that is not on today's agenda? seeing none, public comment is closed. next item. >> commissioners, you are now on item 5, discussion and briefing -- mr. president, would you like to take items 5 and 6 together? >> sure. >> item 5 discussion and briefing on supervisors file no. 12096 3 business and tax regulations code improvement districts longer term when assessment pledged to bond, lease or other obligations, alternative 2/3 weighted vote by business. >> okay. >> item 6, discussion and that is a discussion item only. item 6 discussion and briefing on supervisors file no. 120989. resolution of intention moscone expansion business improvement
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district. we have lisa pagan, office of economic and workforce development presenting. >> welcome, lisa. >> thank you very much. small business commissioners. president adams, i have a presentation, but i brought handout copies in case you preferred that. so i'm just trying to get it up here. one second, please. i hope it's showing. great. lisa pagan, office of economic and workforce development. i am here to brief you on two
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legislation were approved at the board of supervisors last tuesday on the 20th of november. that are related to the proposed moscone expansion district. i work in the office of economic and workforce development. and i run our technical assistance program, focused on property and business improvement district. and this proposed moscone expansion district is a new proposed business improvement district that would assess all hotels in san francisco to raise funds to do a few things, but most importantly, most of the funds would go towards the construction of an expansion of our current moscone convention center. some of the funds would go towards a few other things and i will get into that in my presentation. but in addition to the proposed assessment district, there is also an ordinance that is going
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to amend our current article 15, which is our enabling ordinance that augments the state property and business improvement district law. and this ordinance will amend it in a couple of ways and i will go into that in one second. so the ordinance allows for the extension of the life or term of the a proposed business improvement district up to 40 years. if that district would levy bonds or other sort of financing that has to get repaid over many years. currently our property and business improvement districts go up to 15 years. so this would allow a longer term, which is necessary for districts like the moscone expansion district that wants to levy bonds in order to build and construct those capital improvements. so on the first slide, regarding the moscone
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expansion district, it kind of gives you an overview of how this is a public-private partnership. the construction budget is $500 million for the expansion, which would increase the meeting rooms available for conventions by 80,000 -square-feet. and it would also increase exhibition space, because right now we're losing conventions because we not have large enough exhibition spaces by 80,000 to 100,000 and increase ballroom space as well by 38,000-square-feet. and it would also improve the public realm on the street level, the pedestrian environment. pedestrian safety enhancements, streetscape improvements to make it a more neighborly, you know, a better design in terms of the feel along the sidewalk
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of the current moscone that you know now on the north and south side of howard. this project would be run -- funded privately and also with city funding. so the process in terms of the construction contract would fall under our local hiring and our local business enterprise requirements for construction projects issued by the city. so in the past five years, there was a similar assessment district that was called the tourism improvement district. and that district also assesses hotels throughout san francisco. and a portion of that assessment district funds the renovations to the moscone complex, which are finishing up now. and we're very successful and -- based on that partnership
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through the private funding mechanism and public process, in terms of it being moscone convention center, we feel really confident we can move forward in the same sort of manner with the moscone expansion. but the renovation included efficient heating, ventilation, air conditioning, 24 new restrooms, energy-efficient lighting, free system internet and improved way-finding and graphic decorations to improve the structures and the livability within them. it's a leed gold certified renovation and those have been finished; the assessment portion of the first moscone district will term out next year and there will be continued assessments from that
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same district that will go towards promoting san francisco and booking hotels and that will last another ten years, but the portion of that assessment district that went towards renovation will sunset next year. so in terms of the moscone expansion district, why they want to expand? they want to expand because basically moscone is at capacity right now. we're losing different conventions to other cities, and we have lost approximately $2 billion in different conventions that go to other cities right now. san diego is one of our biggest competitors. we need more contiguous space in the convention complex. by doing this, by increasing
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the ability to have bigger conventions and more conventions is the best way to create new demand for home depot hotel rooms. when there are conventions it affects the hotel bookings significantly. so we want to stay competitive. it's an incredibly important driver to the tourism of san francisco. some of the benefits of increasing the capacity to have more conventions or larger conventions than we can today, again, we're losing about $2 billion in direct spending for conventions that have already been canceled because our venues are not big enough. did would increase the average daily rate for the hotel rooms and occupancy rates for our
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hotels. and the rev par, a return of the rate for hotel rooms is supposed to increase by 6-7.5% when the expansion opens. we also expect a higher occupancy rate in the hotels of 87.6% and the hotel value will increase as well for the properties. we anticipate new jobs in about 3500 to 600 -- 6800 new jobs and $699 million to $1.4 billion by these increases conventions. i wanted to go through the timeline. it takes some time to fund the expansion.
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right now we're at the petition phase. so the petition phase is when the hotels received the petition and they were able to vote yes or no if they wanted to pay funds into the assessment district to fund this proposed expansion. the petitions came back and they are at 54% of the weighted support among hotels. those are submitted to the board of supervisors, so right now we're at the ballot-mailing stage. the board just approved a resolution of intention, which is just stating the board's interest and intent to form this district, if there is enough votes during a special ballot election spays. phase and it was approved last tuesday by the board of supervisors and there is a management plan that goes with that resolution that details all of the things that the district will do and the details of the assessment and
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the boundaries and it has all of the attached sort of market impact studis about why doing this district will help the economy. so for a lot of meat and detail you can look at the management plans and attachments. so the ballots will be mailed out by the end of this week to all the hotels. and then we'll have an informational meeting for the public to attend in january at the budget and finance committee. it will be on january 23rd. and there there will be a ballot hearing will the ballots will be voted on by the hotels, returned to the department of elections and counted by the department of elections at a february 5th hearing. that will be in front of the full board of supervisors and testimony will be taken that day as well. and then there is other legislation that goes with the resolution to establish the district, which would be voted on in the future after the
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ballots come back february 5th. there is also a resolution to issue bonds. so that will have to go to the board of supervisors, as well as well as to our capital committee for consideration. and then the design process and the ceqa process. that is starting this december. but that will go for two years. so there will be ceqa review, design review, the planning commission, the board of supervisors. so there is a lot of different pieces of sort of check-ins and approvals with this project to move forward, but the financing piece is a huge, important piece and that is what this assessment district is trying to accomplish is funding at least 75% of the construction project in addition, the city would also contribute funds every year. right now we contribute $8.2 million a year to the renovations and that would
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carry forward and go towards the expansion project. and then there is an increase of 3% to $10.7 million after a few years. the city plans to issue certificates of participation. the city plans to issues certificates of participation in the form of bonds in 2017. so even though the assessments would start as of next july, there would be pay-as-you-go payments towards the design, engineering, construction and then the city would issue funds and assessments and city funds would be used to pay back the bonds. the assessment district is proposed for 32 years, and there are two zones, which there is zone 1. and these zones are the zones that we have right now for the
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existing tourism improvement district. zone 1 is van ness or east of van ness and north of 16th street and that zone has a higher rate, because they are closer to the convention center. so they seem to benefit more according to the analysis we have done. zone 2 is west of van ness and south of 16th street and they have a lower assessment rate. but they will benefit as well. because it's been shown through the studies that we have that are attached to the management plan, that when the hotels close to the convention center fill up, those fill up because of higher demand and also room rates also go up. in addition, the billing and collection will be conducted by the city. so right now the treasurer and tax collector issue the bills and collect the assessments for the existing tourism improvement district. that would continue.
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but the city would also have a contract with the san francisco tourism improvement district, which is a non-profit. they have a board of directors of the folks who are assessed in the tourism industry and other at-large participants and they work with the city on -- well, the expansion project. in addition, to the expansion project the assessment district is going to fund a couple other things. it's going to fund a convention sales and marketing. so they'll basically be promoting the convention center to the conventions that exist internationally and nationally and try to lure them to san francisco with some of the funds. they'll have a capital reserve and maintenance reserve for future renovation needs, as well as they operate the assessment district itself. so the construction timeline is
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2015 to 2018. and again, the term of district itself for the assessments goes from 2013 to 2045. so with that, i am happy to take questions. it was a really quick and brief overview. i know. but we are really excited to work with the hotels and the tourism and hospitality industry to make this happen. we think this is a really great project for the city because it's improving the city-owned asset, the convention center, as well as increasing taxes for the city's general fund and a lot of jobs. so with that said i'm here to answer any questions that you have.